Tag: FAFSA

How to Spend Your Student Loan Money

Posted on by Melanie Datu
student loan money

What can you use student loans for? It’s that time of the year when students start to receive their financial aid refunds. This typically occurs when students have either secured enough money through grants and scholarships to cover their tuition and fees, or they have borrowed more student loan money than they actually needed.

What Can You Use Student Loans for?

If you fall into the second category, don’t rush out and spend that money just yet. Unlike the money you may have received from a scholarship or grant, your student loan money will eventually need to be paid back. I know it can be tempting to splurge a little, especially if you have been strapped for cash the last few weeks, but trust me when I say you’ll regret it after graduation.

Why? Student loans carry substantial principal and interest payments which can come back to haunt you later if you’re not careful and don’t budget accordingly. If you find you have a little extra money coming back to you this semester, here are few do’s and don’ts to consider when deciding how to spend your student loan money.

Do use your money to…

  • Purchase food for your dorm or apartment.
  • Pay housing or rental fees and room and board. 
  • Cover your books and supplies for the semester.
  • Pay for transportation or vehicle maintenance.
  • Cover your utilities and other necessary living expenses.
  • Pay tuition and fees for the summer semester.

Don’t use it to pay for…

  • A weekend getaway to Las Vegas.
  • Drinks for everyone at the club.
  • The new spring collection at Forever 21.
  • Pizza for the entire dormitory.
  • Black lighting and a disco ball in your dorm room.
  • Concert tickets to your favorite bands.
  • Spring Break in Cancun.

It’s never a wise idea to use your student loan money to cover items that aren’t necessary for your education or daily living expenses. Why pay for a gym membership when you can use the campus facilities for free? There’s no need to purchase cable or satellite television, or splurge on the newest MacBook Pro, when there are more practical alternatives. Set a budget for yourself and stick to it.

Any additional funds you may have can be saved for future semesters, or you can start making payments on your current loans. You can even have the financial office reduce your federal or private loan if you know you won’t need the entire amount.

Some expenses may seem trivial, but they do add up.  For instance, if you spend $40 a week on fast food, over the course of four years that could add up to around $2,000. With a student loan interest rate of 6.8%, you’ll end up paying an additional $750 over the term of your loan (based on a 10-year repayment term).

If you extend your payments at any time, you’ll be paying even more. Be smart and follow these two simple guidelines: borrow only what you absolutely need, and restrict your spending to “needs” and not “wants.” If you don’t, you could be graduating with a lot more than just your college degree.

 

How Much Does College Cost?

Posted on by Melanie Datu
How Much Does College Cost?

The number one question that students and families ask about attending college is how much does college cost? The cost of attendance or COA is like the sticker price for college. Every year the cost of attendance goes up but merit and need based scholarships and grants may cover part of COA. College expenses could be tuition, fees, housing, books, supplies, transportation and other out of pocket expenses. 

According to NCES, the estimated total cost of college at a public institution is $28,297, $49,654 at private nonprofit institutions, and $26,261 at private for-profit institutions in 2022 to 2023.

How Much Does College Cost?

Each year for every state the cost of attendance keeps rising. It’s typically cheaper to attend an in state college rather than out of state. According to NCES, out of state students in the U.S. paid an average of $28,297 more in cost of attendance (COA) than in state students in 2022-23.

Also, the average cost of college may vary between public and private institutions along with two vs four year schools. Keep in mind to calculate other costs such as housing, books, supplies, transportation and other personal expenses. 

Massachusetts has the highest in state average cost of college which is $67,953. District of Columbia offers the lowest in state average cost of college at $6,152. The chart below shows the average cost of four year college in each state for in state tuition and out of state tuition.

  Public College Private College 
RankingStateIn State TuitionOut of State TuitionIn State TuitionOut of State Tuition
1Utah$15,286$22,244$16,003$16,003
2Wyoming$14,634$14,669N/AN/A
3Florida$15,810$18,344$43,140$43,140
4Idaho$17,275$24,754$15,963$15,963
5New Mexico$17,516$21,952$37,201$37,201
6Montana$17,292$27,435$42,910$42,910
7North Dakota$18,362$13,973$24,900$24,900
8Oklahoma$17,909$22,125$40,136$40,136
9South Dakota$17,459$13,194$36,145$36,145
10Wisconsin$18,295$27,024$48,660$48,660
11North Carolina$18,264$23,452$51,868$51,868
12Nevada$18,293$23,550$38,083$38,083
13Arkansas$18,803$21,981$33,035$33,035
14Georgia$19,057$23,345$44,846$44,846
15Missouri$20,534$22,812$40,501$40,501
16Mississippi$19,765$20,848$28,712$28,712
17West Virginia$20,011$22,915$22,236$22,236
18Kansas$18,803$21,981$33,035$33,035
19Texas$18,807$25,419$51,236$51,236
20Louisiana$20,622$23,395$57,334$57,334
21Washington$21,715$31,410$53,857$53,857
22Alaska$22,063$25,414$28,427$28,427
23Nebraska$19,851$21,953$37,285$37,285
24Tennessee$21,061$24,381$42,767$42,767
25Indiana$21,090$29,269$49,853$49,853
26Alabama$21,448$27,145$27,835$27,835
27Iowa$20,088$28,257$47,150$47,150
28Maine$21,126$30,099$54,613$54,613
29Minnesota$22,992$25,238$46,286$46,286
30Kentucky$22,575$25,325$37,019$37,019
31Hawaii$22,264$32,043$33,933$33,933
32Colorado$23,061$31,699$40,791$40,791
33Maryland$23,008$27,111$62,317$62,317
34Ohio$23,552$26,881$48,614$48,614
35Oregon$25,397$34,292$60,038$60,038
36California$24,349$34,454$54,795$54,795
37New York$25,082$20,304$60,677$60,677
38Arizona$24,896$26,025$23,249$23,249
39South Carolina$23,600$33,217$38,477$38,477
40Michigan$25,463$40,004$43,305$43,305
41Delaware$25,472$32,419$24,358$24,358
42Virginia$26,507$36,674$35,742$35,742
43Rhode Island$27,872$32,910$64,025$64,025
44Illinois$26,993$29,350$50,638$50,638
45Connecticut$28,816$37,414$60,408$60,408
46Pennsylvania$27,336$26,426$60,218$60,218
47Massachusetts$28,572$32,291$67,953$67,953
48New Jersey$28,633$29,681$53,717$53,717
49New Hampshire$29,381$32,035$33,197$33,197
50Vermont$30,921$41,914$64,274$64,274
51District of Columbia$6,152$13,004$62,714$62,714
 

How Much Does it Cost to Study Abroad in College? 

The range of programs and countries makes it hard to get an exact bottom line on whether a college overseas is cheaper. Just like in the states, there are private and public colleges. Also, the cost of living varies in different countries and cities.

When you do your math, you want to factor in the expenses that go into study abroad programs. Apart from tuition and fees, you need money for housing, food, travel and transport to and from college. Also, there is insurance to cover medical, dental and travel.

You also want to factor in the exchange rate for US dollars and if you are eligible for financial aid. That said, there are countries that offer free college or very affordable tuition. So, you may be able to satisfy your wanderlust while saving money.

7 Countries with Free College or Affordable Tuition

1. Germany

Tuition is free in most states, but you could pay tuition fees of about $1,793 USD and a semester contribution of up to $418 USD and living costs. The average German student has expenses of $979 USD. 

2. Iceland

Tuition is free, but at public universities you pay an annual administration fee which differs at each college. The cost of living for food and housing of about $1,613 per month. 

3. Norway

Tuition is free at public universities, but you might have to pay fees of $33 to $65 USD and the cost of living is high. It may be worth checking if financial support is available to offset your living expenses. 

4. Austria

If you have a Residence Permit – Student, the average per semester cost is $868 USD. Your housing costs (rent, food, etc.) are additional expenses as well.

5. France

Public universities in France may cost from $178 to $1075 USD per term. You also need at least $514 per month to survive but that is low and varies by region. Paris is usually on the high side.

6. Luxembourg

The University of Luxembourg is the only public university in the country. Here, you need a living budget of $1,405 USD. You also pay a registration fee of $478 for semesters 1 and 2. Then $239 for semesters 3 to 6.

7. Spain

Depending on the cost per credit at Spanish universities, international students might have to pay up to $7,172 USD per year for undergraduate programs. The average student also spends at least $956 USD per year on books alone, and cost of living tends to be high in big cities like Madrid.

Where Do You Go if You Have a Student Loan Problem?

Posted on by Melanie Datu
Student Loan Problem

Earlier this month, the Consumer Financial Protection Bureau (CFPB) released a report detailing the types of complaints it has received over the last three years. This not only included information about credit card and mortgage complaints, but also issues with private student loans.

Resolve a Student Loan Problem

The majority of the complaints the CFPB received regarding private student loans involved problems with consumers repaying their debt. Nearly 46 percent of consumers cited issues with billing, fees or restructuring their loans, and another 22 percent had problems when they were unable to pay on time.

Since these are common complaints among student loan borrowers, I thought it might be a good time to address a question I often get on social media: “Where do you go if you have problems with your student loans?”

Start With Your Student Loan Lender/Servicer

For issues regarding payments or balances due, be sure to gather any and all supporting documentation you may have on file. This will include notes you have taken during phone calls, correspondence received through postal mail or email, and all payment receipts.

Copies of your bank statements or cancelled checks may also serve to help verify payments. In many cases, you can log into your student loan account and pull a payment history, as well. Carefully review your paperwork to ensure your complaint is valid. If you find there is still a discrepancy, contact your student loan lender or servicer and file a formal complaint. Be calm and polite, and provide copies of all materials to support your claim.

You should also contact your lender or servicer if you are having difficulty making your payments on time. Ask about other repayment options, such as forbearance or deferment. If you have a federal student loan, you may also be eligible for one of several different repayment plans that can significantly lower your current monthly payments.

Most lenders will require proof of your income, so be prepared to provide copies of your recent tax forms and pay stubs to document any recent changes.

Regardless of the type of complaint, it’s very important that you document your process from the start. Whenever you speak with someone, take down his/her name, the date and time of the conversation, and keep notes about what was discussed. Always follow up in writing (paper or email); a paper trail is essential.

Request a copy of your customer service history, too. These steps will help you in the event your issue is not resolved.

Seek Additional Help

If you have provided suitable documentation to support your complaint, but your lender/servicer is still unwilling to help or the issue has not been resolved to your satisfaction, you may still have other resources at your disposal. Depending on whether you have a federal student loan or a private student loan, the next step will vary.

For federal student loans, you’ll want to review the Self-Resolution Checklist to ensure you have taken all the necessary steps to resolve the issue yourself. If you still need help, your next step would be to contact the Federal Student Aid Ombudsman Group. Before reaching out to them, complete the Information Checklist, as it lists many of the questions that will be covered during your initial consultation.

You can contact the Ombudsman Group by postal mail, phone, fax or you can file a confidential complaint through the online Ombudsman Assistance Request Form. Once the department receives your form, it will collect information about your case and offer assistance in identifying a suitable resolution.

If, however, you have a private student loan dispute, you should contact the Consumer Financial Protection Bureau (CFPB). Whether your student loan is issued by a bank, credit union or school, the CFPB can assist with finding a resolution for just about any student loan complaint. The process is fairly simple, too.

You can register your complaint online and attach any supporting documentation. Once your complaint has been received, the CFPB will forward it to your lender. The lender will have 15 days to respond and, in most cases, no longer than 60 days to provide a resolution. The CFPB has a very good track record for getting results, with 97 percent of lenders responding to complaints in a timely fashion. Over the last three years, more than 11,400 borrowers have filed a complaint, and 73 percent were satisfied with the resolution provided.

Even More Help Available

If you did not take the initiative to find a resolution for your student loan problems before you started missing payments, you may find that your are now faced with default. Although there is little recourse for private student loan default, you can still get help with federal student loan debt resolution through the Federal Student Aid’s MYEDDEBT.

Through this portal, you can get information on how much you owe on your defaulted federal student loans, your payment history, and options for resolving your debt. You can also access forms to request a hearing, review, or discharge of your debt, as well as forms to submit a complaint. Ignoring your debt won’t make it go away, so do yourself a favor and seek help as soon as possible.

 

Gift Aid vs. Self-Help Aid

Posted on by Melanie Datu
Gift Aid vs. Self-Help Aid

Now that college acceptance letters have started to roll in, students will soon begin receiving financial aid award letters from their prospective colleges, as well. This vital component of the college planning process can be a bit confusing, especially when colleges do not use the Financial Aid Shopping Sheet created by the U.S. government.

This standardized form is meant to help students clearly understand what is being offered and allows them to easily compare award packages from different schools.

Unfortunately, fewer than 2,000 colleges to date have voluntarily adopted this form, which means some students may be unsure of what is actually being offered in terms of financial aid.

First of all, it’s important that students understand that not all financial aid is free money for college. In fact, most financial aid packages include a combination of gift aid and self-help aid. And this is where many students get lost or confused.

They see the total amount being offered, but don’t clearly understand what they are actually taking on in terms of potential debt. Before agreeing to any financial aid package, students must understand the distinct differences between the two types of aid. Here is a brief overview of each, and what students may see as part of their financial aid award packages.

GIFT AID

Gift aid, simply put, is free money for college. Students typically receive gift aid based on financial need, academic achievement, or for other skills and talents. Here are the major types of gift aid commonly offered to students:

Grants

In general, grants are awarded to students based on financial need. This may include Pell Grants and Federal Supplemental Educational Opportunity Grants, as well as grants offered through state and institutional programs. Students must complete the Free Application for Federal Financial Aid (FAFSA) so colleges can determine their eligibility for these awards.

Some colleges may even offer small grants to students who have done well academically, especially during the summer semester, if there are additional funds available. Students who lost a parent as a result of military service in Iraq or Afghanistan after 9/11 may also be eligible for the Iraq and Afghanistan Service Grant, even if their Expected Family Contribution (EFC) is too high for a Pell Grant.

Scholarships

Students can receive scholarships from a variety of sources and for a variety of reasons. The most common scholarships awarded by colleges are for financial need or academic achievement. Students may receive an award based on their SAT or ACT scores, class rank, grade point average (GPA), as well as the ethnic background, or their intended major.

In addition, student athletes at an NCAA Division I or Division II school may receive a scholarship for their particular sport. Those students who have a special talent, such as music or theater, may also receive a scholarship to help offset their costs.

It’s important to note that students can also receive scholarships from state agencies and private providers, such as local businesses and charitable organizations, though these may not be included on the financial aid award letter from their prospective schools.

Students must report any outside scholarships received to their college’s financial aid department, as it will be counted toward the total financial aid allowed and must not exceed the Cost of Attendance (COA).

 

SELF-HELP AID

Self-help aid is money awarded to students that must be paid back, or requires something in return, such as volunteer hours or a certain number of work hours. This includes the following categories:

Work Study

This need-based financial aid program is offered through colleges and supplemented by the federal government. Funding is limited, so it’s important that students apply early and indicate their interest when completing the FAFSA. If eligible, students may seek or be assigned part-time work either on or off campus.

The hours are typically very flexible and the money is paid directly to the student. Money earned through work-study programs is not counted as income when students apply for FAFSA the following year, therefore it will not lower their financial aid eligibility.

Some schools offer their own work study program unrelated to the federal program and wages earned will count toward student income reported on the FAFSA.  

In all cases, it’s important to know that these grants must be earned through work and that the award will not be directly applied to a student’s tuition bill.

Student Loans

Students may be offered federal loans, private loans, or a combination of the two. Unlike gift aid and work-study programs, the money received through loans must be repaid.

In general, federal student loans offer lower interest rates and have more flexible repayment terms for students. There are two federal student loan programs available. The largest, the Federal Direct Student Loan Program (FDLP), includes Direct Subsidized and Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. The other, the Federal Perkins Loan Program, is a school-based loan program that is awarded to students who show exceptional financial need.

Eligible students may receive these loans regardless of their credit history, except in the case where a parent or graduate student is requesting a PLUS Loan.

Private student loans, on the other hand, require a good credit score. Most students will also need a cosigner with good credit to obtain a private student loan. It’s important that students review the interest rate, loan fees, Annual Percentage Rate (APR), length of repayment, and total cost of the loan before signing any documents.

Each lender is different, and some may have more favorable terms or offer repayment incentives, so students should compare offers carefully before making a decision.

Private loans should only be used when all other forms of financial aid have been exhausted, and students should only borrow the minimum amount required.

Students may find that their financial aid packages fall short of covering all of their expected expenses, especially if they have a high EFC and do not qualify for need-based assistance.

If there have been changes in their income, a recent hospitalization, or other factors that may have reduced their available college savings, students should contact their college financial aid office and request a review. In some cases, students may be awarded additional financial aid.

For those who still find themselves lacking the necessary funding for college, I suggest looking into other options, such as employer tuition assistance or reimbursement programs, or using a free scholarship search.

How to Remove a Cosigner From a Student Loan

Posted on by Melanie Datu
How to Remove a Cosigner From a Student Loan

Are you wondering on how to remove a cosigner from a student loan? With the rising cost of college tuition, more students are turning to private student loans to help bridge the gap between what is offered through financial aid and what they can pay out of pocket and their actual college costs.

Unfortunately, many young people have a limited credit and employment history, which means they will be unable to secure a private student loan on their own. In general, most lenders require students to have a credit worthy cosigner before they will be approved for financing. If a cosigner no longer wants to be responsible for a student loan, here are ways on how to remove a cosigner through a student loan cosigner release. 

How to Remove a Cosigner from a Student Loan

This person doesn’t necessarily need to be related to the borrower (student), but parents and other family members often step up to help out. But, being a cosigner can be risky. If the borrower fails to make payments, the cosigner will be legally obligated to repay the debt. There may even be some risk for the borrower, as well.

For example, should the cosigner die or file for bankruptcy before the loan is paid in full, the student loan servicer may place the loan in default and demand that the balance be paid in full, even if all payments have been made on time. Plus, removing a cosigner from a private student loan is not always an easy process. There are two primary ways a cosigner can be freed of their obligations under the promissory note they signed.

 

Student Loan Cosigner Release

Many banks and lenders offer cosigners the opportunity to be released from a private student loan, but borrowers need to be sure the option is available before consummating the loan. Those that do offer this escape clause typically require borrowers to make a minimum number of consecutive, on-time payments (usually between 24 and 48 months).

Borrowers must also provide evidence that they have sufficient monthly income to cover the payments, and generally must submit to another credit check.

Most lenders provide a form that must be completed, as well. If a borrower already has a taken a loan that was cosigned by another individual, he/she will need to contact the loan’s service to find out if obtaining a release for the cosigner is an available option and, if so, what steps need to be taken for the cosigner to be removed from the loan.

Refinance/Consolidation

For those who do not have the option of obtaining a cosigner release, refinancing or consolidating their  loans may be the only way to remove a cosigner from his/her obligation. Borrowers will need to have a good credit history, stable employment, and enough income to cover the monthly payments on their own in order to refinance or consolidate their loans.

Basically, this allows borrowers to pay off their previous debt and releases cosigners from any further obligation. The original loan will, however, remain on the cosigner’s credit history, but will indicate that the loan is closed and paid in full.

If neither of these options is available, cosigners should do their best to ensure payments are being made on time until the debt is paid in full. This may require them to even pitch in now and then, but it’s better than finding out that their credit has been ruined due to several late payments being reported to the credit bureaus, or worse, being required to pay late fees, penalties, and collection costs because the loan went into default status.

Financial Aid for High School Students & Finding College Money for High Schoolers

Posted on by Melanie Datu
Financial Aid for High School Students

The financial aid process is a little bit different for each student, but there are a few things that hold true for just about everyone, including high school students. Even though you’re still in high school doesn’t mean you shouldn’t start thinking about how you’ll pay for college.

Tips for Finding Financial Aid for High School Students

There’s a ton of information about financial aid on this page, and yes, we know it looks intimidating, especially if you’re still in high school. Before you — students and parents alike — get too far into the guide, check out the flowchart that walks you step-by-step through every possible option you can pursue for financial aid.

Interact with the flowchart and answer the basic questions it asks to help you explore how you should tackle your financial aid game plan — and in what order.

Taking this first step should save you a ton of time and (and hopefully money) as you work through the process. Once you know where you stand, you can come back and research the funding options the most sense for you and your situation.

The Basics

Filing the Free Application for Federal Student Aid (FAFSA) is essential. There are many variables that go into determining eligibility, and there’s no way to know if you are eligible for assistance if you don’t apply.

So, even if you don’t think you’ll qualify for federal financial aid, file the FAFSA.

Here’s why:

  • The FAFSA is used by agencies and funding sources other than the federal government to determine your eligibility for scholarships, grants, loans and other financial aid programs.
  • The FAFSA is used as your application for federal student loans. Because of this, completing the FAFSA gives you two big advantages: you may be eligible for non-federal aid, and even if you don’t want a loan now, the paperwork is already done in case you change your mind.
 

Filing the FAFSA

The quickest way to file the Free Application for Federal Student Aid (FAFSA) is online at: FAFSA on the Web. Complete the FAFSA as soon as possible after January 1st of the year in which you will need funding.

It will be easier to fill out the FAFSA if you have these items handy:

  • Your Social Security card and driver’s license
  • Your W-2 Forms or other records of earned-income (and your spouse’s, if you are married) federal income tax return.
  • Your parent’s federal income tax return (unless you are filing as independent)
  • Records of other untaxed income you received, including welfare benefits, social security benefits, TANF, veteran’s benefits, and military or clergy allowances
  • Your current bank statements and records of stocks, bonds, and other investments
  • Your business or farm records, if applicable
  • Your alien registration card (if you are not a U.S. citizen)

Tip: If you or your parents have not completed federal income tax returns yet, use estimates from pay stubs and bank statements.

If you or your parents’ income has not changed significantly, you have a choice. You can use the amount of tax you paid last year or you can estimate. Here’s an easy way to estimate the amount of tax you owe:

  1. Take the line item from your federal income tax return titled “This is your total tax.”
  2. Divide it by your adjusted gross income.
  3. Multiple this number by your estimate of this year’s adjusted gross income to obtain an estimate of the amount of you tax owe.

Other Applications You May Need to File

CSS Profile

Incoming freshman may also need to complete the CSS Profile Application. Some private colleges require the profile because it gives financial aid administrators more information to determine your eligibility for need-based assistance and funding directly from the school. In other cases, they may need the profile to offer admission to very competitive programs for early admission where the admissions process is not need blind.

The Profile must be completed earlier than the FAFSA – usually in the middle of October of the year prior to the year you’ll need funding. Check with your college to see if you are required to complete the CSS Profile. You can register and apply online at: CSS Profile

Institutional Aid Applications

Some schools require you complete a form they provide you. This is called an institutional aid application. On this form you may be asked to tell the school about outside scholarships you expect to receive and whether you’re interested in other types of aid such as work study.

Often you can also use this form to explain any special circumstances not taken into account on the FAFSA (e.g. an unexpected recent loss of income, extraordinary medical expenses, etc.). If your school requires one of these applications, they will mail it to you.

Financial Aid Eligibility

Financial Need is a term used to describe how much need-based financial aid you’re eligible to receive. Your financial need is calculated by subtracting your school’s Cost of Attendance (COA) from your Expected Family Contribution (EFC). In order for you to receive need-based aid, your COA must be greater than your EFC.

Let’s take a look at how Financial Need is calculated.

COA – EFC = Financial Need

Schools use the processed data from the FAFSA and/or the CSS Profile to determine your financial aid eligibility. Whether you complete the FAFSA and, if required, the Profile, the basis for determining your award is a number referred to as the Expected Family Contribution (EFC).

The EFC is a measure of your family’s ability to pay for college based on student and parent income and asset information, your state of residence, household size, and number of household members in college. Some factors that go into determining your EFC include demographic, financial, and household data, among other things.

The next step in calculating your financial need is figuring out what the Cost of Attendance (COA) will be for the school you will attend. The school you attend establishes a COA for the academic period for which you will be enrolled. The COA includes tuition, room and board, fees and estimated living expenses. Variable costs like books and personal expenses are also included.

The Financial Aid Award Letter

The financial aid office at your school will use the need-based resources they have available to try to meet your Financial Need. They will use other funding sources that aren’t based on need such as the Unsubsidized Direct Student Loan to help cover the entire COA.

Of course, they won’t always be able to meet a student’s full financing need or cost of attendance. 

Follow-up Forms

Sometimes, even after a college has received your FAFSA data, additional information may still be required to complete your package/award. This process is called “verification”. If you are selected for verification, the school will ask that you fill out a Verification Worksheet.

In addition, they request physical copies of documents such as federal income tax returns, W-2′s and any other income statements (e.g. 1099′s) they may require.

Warning: the college will not process your financial aid, without this additional documentation.

If you plan on accepting a Stafford loan or Direct PLUS loans, you will also need to complete promissory notes. The college you attend will provide you with specific information on how to complete this part of the process.

If it’s your first time borrowing a federal loan, you’ll also need to complete an “entrance interview,” which is simply a session done online or in-person that informs you of your rights and responsibilities as a student loan borrower.

Read everything the college sends you carefully and respond to requests promptly. If you have questions or don’t understand something, call the financial aid office and ask! They’ll be more than happy to provide a helping hand.

Types of Financial Aid

If you aren’t familiar with the different types of financial aid that undergraduate students can pursue, we encourage you to do your homework and educate yourself using the links below. Financial aid comes from a variety of sources, so be sure to review each financial aid type in greater detail as you put together your plan.

Job Loss and Financial Aid

Posted on by Melanie Datu
Financial Aid Job Loss

Whether voluntary or involuntary, the loss of one’s employment when a child is attending college can leave a parent distraught. Questions like “how will I come up with tuition?” and “will my child have to leave school?” are very common and real. There’s no doubt that the loss of a job has incredibly serious consequences for families–especially those with one or more students currently enrolled in college. Find out how you can receive financial aid from the FAFSA and unemployment status. Financial aid may be available to those who qualify.

Financial Aid Job Loss or Income Reduction

As with many such issues, the best way to approach the problem is pragmatically. And when it comes to financial aid, there is actually a prescribed approach that you should take to help get your financial aid squared away as soon as possible. Let’s take a look at the next steps you’ll need to take so you can rest easy and get back to your number one priority–finding a new job.

Dealing with FAFSA and Unemployment When You’ve Lost Your Job

  1. Before we get started, don’t panic. You are not the first family to have this crisis while one or more students are attending college. In fact, the financial aid office will see this situation many times each academic year.
  2. Gather documentation regarding your job loss. This may include a separation notice or even COBRA eligibility paperwork provided by HR. You will also want to have a copy of your final paycheck.
  3. Ask for reconsideration of your student’s financial aid. Write a detailed letter to the financial aid office explaining your circumstances and provide the documentation from step 2 above. Your letter should both explain the nature and extent of your unemployment as well as a projection of your family’s gross income for the remainder of the year in question.
  4. Call the financial aid office and ask if they have a form you need to complete to address special circumstances such as a loss of employment. Have the office email the form or download it from the school’s financial aid website, if that is an option. Carefully and thoroughly complete the form.
  5. Send the school’s appeal form, as well as your letter and documentation, to the financial aid office. It never hurts to send via UPS, FedEx or certified mail so you know when your letter has arrived. Keep the receipt date handy because you’ll want to follow up a few days after to inquire about the status of your request.
 

Financial Aid School Review Process

Now what? Each school has its own review process when it comes to making adjustments to your financial aid package, particularly if unemployment will alter FAFSA. Generally, they will use your adjusted income for the current academic year and update your FAFSA information to see if you may be eligible for additional federal student aid. If you attend a private school, they will also determine whether or not they are able to offer additional assistance from the school.

It’s important to remember that even though you have lost income, your financial aid package may not change. For example, if you did not receive need-based assistance prior to your job loss, it’s possible that the income you earned up until your loss of employment, combined with other assets and factors, may still leave you ineligible for such assistance.

Making these adjustments falls under the financial aid office’s ability to exercise professional judgment. It is fully and wholly their decision as to how they factor your job loss into their calculation of financial aid.

Whether you receive an adjusted award or not, you will still be anxious to find your next employment opportunity and to determine how you will afford any upcoming educational expenses. Many families turn to federal student loans, including the federal PLUS Loan for Parents.

One of the advantages of the PLUS Loan is that you can defer making payments until after your student graduates college or drops below half-time status. Some families also consider private student loans. Assuming you have good credit, cosigning a private student loan leaves the student as the primary borrower. Due to historically low interest rates at the time of this writing, private student loans can actually be less expensive than the PLUS. Even if you are denied PLUS, you still have options.

While we know borrowing is never the preferred option for paying for school, it does buy time and that is a very important consideration when your family is struggling to make ends meet after a loss of income.

What Can the Student Do to Help? Scholarships and Work-Study!

Finally, it’s important to have an open and honest discussion with your student. Let him/her know that he/she may need to pitch in financially. That may mean pursuing part-time employment or work-study opportunities (if eligible). Even a small amount of extra income from your student can help offset his/her day-to-day expenses.

It’s also important for him/her to continue to look and apply for outside scholarships. Stress how critical it is for your student to give these applications his/her full attention and encourage him/her to carefully review prior to submission. Even if your student may not be eligible for need-based awards, there are thousands of other programs that may reward him/her for academic achievement, talent, athletic skill, and a variety of other reasons.

What to Look For in a Student Loan Cosigner

Posted on by Melanie Datu
What to Look For in a Student Loan Cosigner

If you’re thinking about taking out a private student loan for college, chances are you’ll need a cosigner to get one. Very few students meet the qualifications for securing a loan on their own, so getting your student loans with cosigner may be a necessity.  In fact, “more than 90 percent of private student loans for undergraduate students…require a creditworthy cosigner” according to Mark Kantrowitz of Cappex. There are several student loan cosigner requirements to look into.

A good student loan cosigner cannot only help you secure a student loan, but also obtain a more favorable interest rate. It’s important, however, to understand the risks a cosigner assumes when he or she agrees to help you obtain a loan. He or she will be equally responsible for paying off the debt, even if you don’t finish college.

Should you fail to make payments, your cosigner will be required to not only cover the past due amount, but also any interest fees and other charges that have been assessed. You should only turn to private students loans with a cosigner once you have exhausted all other possible funding sources, such as federal student loans and scholarships. If you do need to pursue a private student loan, you should know who can cosign a student loan and also be aware of the student loan cosigner requirements before asking someone to set up as your cosigner.

What are the Student Loan Cosigner Requirements?

Cosigners for student loans typically need a good credit score, stable income, be in good health and be willing to help you if you are unable to meet your loan payments.

1. Credit History of Cosigner

After the financial and credit crisis of 2008, it became more difficult to qualify for unsecured consumer credit. In the case of private student loans, most borrowers will need a cosigner who has a favorable credit history and a reliable source of income. Your cosigner should have a low debt to income (DTI) ratio, as well as a history of making payments on time.

There are frequently student loan cosigner minimum credit score requirements.  Lenders are more likely to approve your loan if your cosigner’s credit score is 720 or higher. If your cosigner has a credit score between 680 and 720, he or she may still be able to help you secure a loan, but the interest rate will probably be higher.

2. Stability

Along with a good credit history, lenders will also look at the stability of your cosigner. This includes job history, as well as the length of time your cosigner has lived in his or her home.

You’ll want to choose someone who has worked for the same company for at least a year, if not longer, and has verifiable income. The longer he or she has lived in the area, and maintained a steady income, the better your chances are of securing a private student loan.

 

3. Good Health

Believe it or not, the age and health of your cosigner does matter. Maybe not so much to the lender, but it should be something you take into consideration. If you choose a cosigner who is in poor health, or over the age of 65, you may be in for an unpleasant surprise later on.

Why? Some lenders include a clause in your student loan agreement that allows them to demand your loan be paid in full upon the death of your cosigner. Or worse, the lender could place your loan in default, even though you have made all your payments on time.

This can happen automatically, without any notice, and effectively ruin your credit.

4. Relationship to Student Loan Cosigner

You may think that your parents are the only ones who can cosign a loan for you, but that is not the case. Other relatives, including siblings and cousins, as well as a friend or a spouse, may act as your cosigner. Basically, anyone with a good credit history and the willingness to help you could act as your cosigner.

Just remember that this is a binding contract. If you fail to make your payments or default, you run the risk of not only ruining your credit and your cosigner’s, but also destroying your relationship.

It might be a good idea to draft a contract prior to asking someone to act as your cosigner. You could include specific details about how you plan to repay the debt, such as setting up automatic payments, as well as a clause that states you will reimburse any missed payments and/or fees covered over the life of the loan.

It’s not required, but it may give your cosigner some peace of mind. Finally, don’t forget to thank your cosigner for helping you out. It’s a serious commitment to make and one that should not be taken lightly.

Does Applying for Multiple Student Loans Hurt My Credit?

Posted on by Melanie Datu
Multiple Student Loans: Impact on Your Credit

We get this question a lot about “Do student loans hurt your credit”. It’s nice to know that some borrowers and cosigners are concerned about the impact applying to multiple student loans may have on their credit. After all, our good credit allows us to finance important big ticket items like cars and homes and receive better rates on things like car insurance and credit cards.

And, as anyone who has reviewed their credit score after applying for a loan can tell you, your score does decrease somewhat based on how recent the inquiry is. Whether it’s an auto loan or a student loan, credit scores are affected by inquiries. Fair Isaac, the company behind the FICO score, has a pretty good explanation about how borrowers should approach the problem and we’ll show you if student loans do hurt your credit.

Multiple Credit Inquiries for Student Loans

According to Fair Isaac, multiple inquiries for student loans over a period of no more than 45 days will have the same impact as a single inquiry.  Your credit score may or may not be impacted by a single credit inquiry and depends mainly on your characteristics of your credit profile. 

When calculating your score, the important distinction is whether you are “rate shopping” or opening multiple new lines of credit.

The way in which they determine this important difference is to look at the time frame in which the inquiries occur. If they are spread over a longer period of time, it may appear that the purpose of the inquiries is to open multiple accounts. If the inquiries occur over a relatively short period of time, it will look more like shopping for the best rate.

When comparing your private student loan options on our site, you may be tempted to go with the lender that offers the lowest “as low as” rate. If you and your cosigner have excellent credit, that may be good enough. However, if you are unsure, you should apply for multiple student loans to compare the final rates and terms offered by the lenders from which you receive approvals.

To ensure the impact on credit scores is kept to a minimum, Fair Isaac recommends doing your rate shopping over a concentrated period of time. While they recommend doing this over no more than a 45 day period, it would be better to be on the safe side and complete your applications as closely together as you can.

Since most undergraduate and many graduate student borrowers will need a cosigner in order to be approved for a private student loan, it will be important to coordinate closely with the cosigner to ensure both the borrower and cosigner complete their portions of the student loan application in a timely manner.

Shopping for the best rates is what we’re all about here at Education Connection. Compare your student loan options and select one or more loan programs. When you are ready, coordinate with your cosigner during the application process and rest easy knowing your credit score won’t take a hit that’s out of proportion to a normal credit inquiry.

 

How Do You Get Student Loans Without a Job?

Posted on by Melanie Datu
Get Student Loans

With a competitive job market, many people are wondering whether it is the perfect time to attend college. These students are unsure about present and future job prospects along with rising student debt. Also, you may not presently have a job. So you are unsure if you may be eligible for student loans without a job? Learn more about how to receive a student loan without a job.

Can You Get Student Loans Without a Job?

Getting a student loan without a job may be possible when you have a cosigner. A cosigner is someone who may be willing to make your payments. Private lenders will accept this payment arrangement. They are willing take on the financial risk when two people make payments. The recent COVID 19 pandemic has forced many businesses to close and furlough staff. This situation has forced students to worry about paying off their student loan debt. It may also force some students to postpone their college courses until the economy improves.

The U. S. Bureau of Labor Statistics conducted an student unemployment study in January 2020. Unemployed high school graduates made up 3.8 percent of the study. College graduates had a 2.9 unemployment rate during the same month. With these worries, students wonder how they may pay for their college expenses. Student loans without a job could fill in the gaps or pay the entire costs. Students may seek a loan from a private lender. You may also be eligible for federal aid if you qualify. Private loan lenders may offer student loans even if you’re unemployed or if you have bad credit history. Financial aid may be available to those who qualify.

How Do I Qualify for Student Loans Without a Job?

One way to qualify is to have a cosigner. Private lenders take into consideration a person’s employment history and credit history. This information allows lenders to figure out the amount of the loan. A cosigner is anyone who meets the eligibility criteria for the student loans without a job. The cosigner may be your parents, grandparents, or another family member. It may also be a spouse or family friend. The cosigner typically have to meet the following criteria:

Income minimum limits and debt to income ratios may vary between lenders. You may need a cosigner if you don’t have a job. Ensure that the cosigner is someone that you trust.

Can You Get Federal Student Loans and Private Student Loans Without a Job?

Both private and federal aid lenders may provide student loans to unemployed students. You should double check if you meet the eligibility requirements of each lender. 

What Federal Student Loans May You Receive Without a Job?

U.S. Department of Education will not review your credit report. The organization will also not check income history. They provide Stafford loans based on financial need. You also typically don’t need a cosigner. The only exception to this rule is if you plan to take out a Direct Plus loan with poor or no credit history. In these instances, you may need to have an endorser, which is similar to a cosigner.

Types of federal student loans that you may be eligible for if you don’t have a job include:

  • Direct Subsidized Loans: A federal student loan for undergraduate students. You may have to show financial need. The federal government will pay the fixed interest rate for the life of the loan.
  • Direct Unsubsidized Loans: A federal student loan for undergraduate and graduate students. You do not need to prove financial need. This federal student loan usually has fixed interest rates for the life of the loan.

Federal student loans typically have lower interest rates. This option also provides more variable payment options than private loans. You need to fill out a free application for federal student aid (FAFSA). Then you may send it to the eligible financial institution. The eligible financial institution may determine the amount of the federal loans.

 

What Private Student Loans Are Offered to Unemployed Students?

Private student loans may be available for unemployed students. You may need to have a cosigner to receive the loan. Citizens Bank and Sallie Mae may provide student loans. You may also seek out financial loans from a credit union. Private lenders may check your credit history and employment history for loan eligibility.

Other private lenders may check your future income potential instead of doing a credit check. This factor occurs when you don’t have a credit history or a co signor. Lenders understand that you may find employment after college. In this instance, you may be able to obtain one and submit a loan application.

How Do I Repay Student Loans Without a Job?

You may have to repay the personal loan using the funds from a savings account. The cosigner may also make monthly payments for you during your unemployment. Then you can take over the remaining loan amount or repay the cosigner. You could ask for forbearance or deferment for federal student loans. Forbearance may suspend your federal loan payments. The interest will still accrue on the loan as you will need to pay it later. Deferred federal loans will not accrue interest.

You may also qualify for loan forgiveness programs or an income driven repayment plan for federal loans. There might be less private student loan repayment options for unemployed students. Some student loan lenders may offer unemployment protection or economic hardship forbearance. You may check with specific loan servicers and student loan options. They may inform you about the length of their repayment term’s grace period. Also, don’t forget to check the repayment terms in the loan agreement which has the contracted interest rate. 

  • Loan Forgiveness Programs: Loan forgiveness programs may forgive the remaining loan amount. You may have to make a certain number of previous payments to qualify. Private loan providers typically do not offer loan forgiveness programs. Federal loan forgiveness programs include the Public Service Loan Forgiveness Program.
  • Income driven Repayment Plan: An affordable payment program based on your income and family size. The PAYE plan applies to federal loans. Sallie Mae offers a $25 payment option while you’re in school and during the grace period.
  • Unemployment Protection/Economic Hardship Forbearance Programs: Some private lenders may offer deferment or forbearance programs. They’re available if you may experience unemployment or economic hardships. The Citizen’s Bank Student Loan offers deferment options. They may defer interest and payments for 6 months after graduation.

What Other Options May Help Pay for College?

You may try to pursue other financial aid options. Grants and scholarships typically do not need you to pay back the funds if you graduate. Yet, certain grants, such as a Pell Grant, may need repayment if you drop out of college. Other options may include:

  • Waiting to go to college until after finding a job
  • Placing the extra money into a savings bank account until you have enough for college
  • Obtaining a part time job, either online or at a brick and mortar establishment

The pandemic has caused increased economic uncertainty on a global scale. Many students are reconsidering their career options right now. You may select the loan options that best fit your current job goals. Then you could receive the desired degree at a great college.

 

FAFSA: Parent and Student Assets

Posted on by Melanie Datu
FAFSA: Parent and Student Assets

Reporting Assets on the FAFSA

The FAFSA requires you complete sections regarding your family’s assets and net worth of investments. Many families are confused about what they should and should not include when responding to these questions. Here’s a simple breakdown of what you should and should not include.

What are Student Assets on FAFSA? What are Parent Assets on FAFSA?

Cash, Savings & Checking Account Balances

When asked to list your (and your spouse if applicable) and your parents’ (if applicable) current cash, savings, and checking account balances…DO respond with the combined amounts as of the date you are filing the FAFSA.  These cover parents assets on FAFSA. 

They ask you to report cash because some families actually keep sizable amounts of cash in safe deposit boxes or otherwise outside of banks.

Is a CD Considered Savings for FAFSA?

Yes, a certificate of deposit (CD) is considered a reportable asset on the FAFSA. Since CDs are liquid financial assets, they must be included under the “net worth of investments” section. When reporting, the value of a CD should reflect its current balance as of the FAFSA filing date.

Net Worth of Investments – Considered Assets

This is where the FAFSA gets tricky and sometimes confusing. DO include the following investments:

  • Real estate other than the home you live in
  • UGMA and UTMA accounts
  • Money market funds
  • Mutual funds
  • Certificates of deposit (CD’s)
  • Stocks
  • Stock options
  • Bonds
  • Other securities
  • Installment and land sale contracts including mortgages held
  • Commodities investments (gold, silver, etc)
  • Qualified educational benefits or education savings accounts such as Coverdell savings accounts, 529 college savings plans, the refund value of 529 prepaid tuition plans

DON’T include these investments as assets on the FAFSA:

  • The equity available in the home you live in
  • The value of life insurance
  • The value of retirement plans such as 401k plans, pension funds, annuities, non-education IRAs, Keogh plans, UGMA and UTMA accounts for which you are the custodian but not the owner

You will also be asked about the value of your businesses and investment farms. Business and/or investment farm value includes the market value of land, buildings, machinery, equipment, inventory, etc. However, business/farm value does not include the value of a small business your family owns and controls more than 50% if that business has fewer than 100 full time or full time equivalent employees.

Also, the value of a family farm does not include a family farm you (your spouse and/or your parents) live on and operate.

Remember also that the FAFSA is asking for net worth of investments–the value of the investments minus any debt owed against them. Debt here means only debt owed against a particular investment or in the case of a business or farm where the business/farm was used as collateral to secure the debt.

 

Guide Tribal Colleges and Scholarships for Native Americans

Posted on by Venessa Regali

In the United States, only 17% of Native American students pursue higher education after high school, and they constitute only 1% of the undergraduate population. The Postsecondary National Policy Institute indicates that even fewer Native American students continue to graduate school, with financial obstacles often playing a significant role. However, there are potential solutions in the form of financial aid, including scholarships, grants, and opportunities provided by Tribal colleges, which can assist more Native American students in accessing college education. Financial aid options may be available to those who meet the eligibility criteria. 

Scholarships for Native American Students

Scholarships provide college funding without the burden of repayment. Numerous scholarships tailored for Native Americans focus on their specific ethnicity and can be offered by educational institutions, businesses, and non-profit organizations. Here are some Native American scholarships worth considering: 

  • United South & Eastern Tribes. Every year, the USET Education Committee provides financial awards to successful applicants from one of the 30 USET Member Tribal Nations. The deadline for applications is January 15. To be eligible, students must have a satisfactory GPA and be enrolled or accepted into a college degree program. 
  • Zuni Tribal Scholarship. American Indian students belonging to the Zuni Tribe can apply for the Zuni Tribal Scholarship. The award amount varies, and applicants must be enrolled in college. The deadline for applications is October 30, and the scholarship requires yearly renewal.
  • Full Circle Scholarship Fund. The American Indian College Fund offers this scholarship with varying award amounts, and the application deadline is annually on May 31st. To be eligible, students must maintain a 2.0 GPA. 
  • Catching the Dream Program. Native American high school seniors can benefit from three different scholarship opportunities through this program. To qualify, a high GPA is necessary, and priority is given to those pursuing STEM topics. The award amount varies, and the application deadline is September 15.
  • Chickasaw Nation Scholarship Program. Chickasaw Nation members who maintain a 3.0 GPA and take three or more credit hours per semester are eligible for this award. The amount varies depending on enrollment status and GPA. Application deadlines fall on February 15, July 1, and September 15. 
  • Wells Fargo American Indian Scholarship. Students who are members of federally recognized tribes are eligible to apply for this scholarship, which offers up to $5,000 per year and requires a minimum GPA of 2.7. The 2023 application deadline has already passed, so please refer to their website for any future updates. 
  • Indian Health Services Scholarship. Scholarships are available for American Indian and Alaska Native health students, with varying award amounts. Applicants are usually required to submit an essay and demonstrate strong academic performance. The application process generally takes place during the winter each year.
  • Daughters of the American Revolution American Indian Scholarship. The application period for this scholarship typically commences in November. It offers a one-time $4,000 award and is open to Native American students from any tribe with a minimum GPA requirement of 3.25 or higher. 
  • Association on American Indian Affairs Scholarships. The association usually provides scholarships for Native American full-time students with a GPA of 2.5 or higher. Unfortunately, scholarship applications for the fall 2023 through spring 2024 term are now closed. Please visit their website for any updates regarding future opportunities. The award amount varies. 
  • Gates Millennium Scholars Program. Native Americans are typically eligible for this scholarship as part of the minority student category. The scholarship may prioritize fields of study where their ethnic groups are underrepresented. The award amount and application deadline vary depending on the specific scholarship opportunity. 
  • American Indian Education Fund Scholarship. This scholarship is usually available to individuals with tribal enrollment for themselves or their parents. It provides an award of up to $2,000 per year. The scholarship application period begins on February 1st annually, with a priority deadline of May 31st. However, the application remains open until January 30th of the following year. 
  • Continental Society Daughters of Indian Wars, Inc., National American Scholarship. Tribal members who are enrolled in at least 8 semester hours and maintain a 3.0 average are eligible to apply for this renewable $5,000 award. The application deadline is June 15 each year. 
  • Gates Post Graduate Scholarship. The esteemed award typically offers $5,000 to $30,000 per year for students engaged in post-graduate training in STEM fields. Applicants must apply by June 1 and demonstrate a commitment to pursuing STEM disciplines.

Grants for Native American Students

Apart from scholarships for Native Americans, there are also grants available for eligible individuals. Grants function similarly to scholarships and usually do not require repayment. In addition to meeting GPA and Native status criteria, many grants also take financial need into account. Here are some grants to consider: 

  • Bureau of Indian Education Grant Program. The BIE (Bureau of Indian Education) offers a grant program specifically for Native Americans with at least ¼ Indian blood. To be eligible, students must be accepted or enrolled in a college program pursuing either an associate or four-year bachelor’s degree. Demonstrating clear financial need, often through the FAFSA application, is also a requirement for this grant. Additionally, individuals with blindness or vision loss may qualify for this program.
  • Blackfeet Nation Higher Education Grant. Members of the Blackfeet Tribe can typically apply for this grant, which offers an award ranging from $2,800 to $3,000 to be used for their undergraduate education. The application process may involve demonstrating financial need and submitting an essay.
  • Indian Higher Education Grant Program. This federal grant program offers help for Native American students with a proven financial need. 

Native American Fellowships

A fellowship typically awards a student money for college in return for service or work in a specific field. Students may need to get a job in a specific area or spend time volunteering in return for their funds. Some Native American fellowships to consider include:

  • American Indian Graduate Center Fellowship Program. This program typically grants students pursuing graduate degrees in specific fields with awards ranging from $500 to $5,000. The application deadline for this grant is June 1.
  • Frances C. Allen Fellowship for Women of American Indian Heritage. he fellowship is provided by The Newberry, an independent Chicago research library. Make sure to submit your application by December 15, and your field of study should align with the library’s collections. 
  • Native American Residency Fellowship at the Vermont Studio Center. The fellowship typically offers a one-month residency, which includes room and board, a studio, and $500 for travel expenses, to Native American visual artists who want to study at the Vermont Studio Center. Applications are due in the fall.
  • AISES Scholarships. AISES often collaborates with various businesses and non-profits to offer STEM scholarships to Native American students. The scholarship amounts and application deadlines vary depending on the chosen program.

Financial Aid for Native American Students

Many different types of financial assistance may be available to Native American students. Getting sufficient help paying for school requires that students understand all of these options. It also requires following the correct steps to apply for aid. Here’s what a student should do to get help paying for school.

Determine Your Status as a Native American

Not everyone who has Native American heritage qualifies for these scholarships. You typically must be an enrolled member of a recognized Native American Indian tribe or an Alaskan Native group to qualify. Another option may be to apply using what is called “blood quantum.” This means the student is at least ¼ Native American. Typically this is because one grandparent is full-blooded Native American. Students who need to prove their ancestry could use the US Dept. of the Interior’s Trace Indian Ancestry page to search their heritage. They may then apply to their tribe to enroll as a tribal member.

Complete the FAFSA

The Free Application for Federal Student Aid (FAFSA) establishes a student’s financial need and eligibility for federal programs, like the Pell grant. Many Native American aid programs require proven financial aid. Completing the FAFSA is the first step in proving need.

Understand the Types of Financial Aid

In addition to scholarships, Native Americans typically have these main types of student aid offered to them. These are:

  • Scholarships. Scholarships for Native Americans are awarded based on merit or ethnic status and usually do not have to be paid back.
  • Grants. Grants also typically do not get paid back. They are often based on financial need.
  • Fellowships. Fellowships pay students for work in a field specific to the group’s goals and needs.
  • Loans. Loans provide money for school that must be repaid, with interest, after graduation.
  • Work-Study. Work-study programs provide money for school in exchange for work at the college.

Check Out Other Sources for Financial Aid

While Native American students may have several financial aid options specific to them, there are other options too. Native American students should look for scholarship and grant options that does not use race or tribal status as a criterion. Scholarships and grants that look at a student’s grades, community service, and other activities could help cover the cost of school.

Challenges Native American College Students Face

Access to college and challenges with the cost of school both impact the native populations.

What are the biggest hurdles that are unique to Native American students when trying to gain admission into school?

Some of the challenges Native Americans face prevent them from getting into college. The cost of college, or the perception about that cost, is typically one hurdle. Sometimes the college admissions process is too complex for students to tackle on their own, and not having parents that went through the process may make this harder. In addition, reservation-based schools tend to have high staff turnover. Without strong relationships with guidance counselors and teachers, students may be less likely to find the perfect college or feel the importance of a college education.

What are some of the biggest challenges once these students are in school?

Many Native American students are likely to overcome these challenges and make it to school, only to find a new set of concerns. Many students find themselves on campuses with few Native students, creating a disconnect between their native culture and their new college community. Often, non-native students and teachers may not understand the cultural traditions of Native American students. If students need to miss class for cultural events, they may suffer socially or academically. Many Native students head to school as older adults. This tends to make finding appropriate, affordable housing difficult. Finally, many Native students may not be prepared well for the challenges of college life. They may feel overwhelmed with the new culture and academic courses.

American Indian College Fund

The American Indian College Fund invests in the education of Native and tribal students. This is the largest charity for this group in the nation. They typically have scholarships for Native American students, but they may also have programming that connects students to the support they need to succeed in college and beyond. Of all the resources available, this is usually one of the most helpful for new Native American college students.

Support Organizations for Native American Students

Support organizations both on campus and off provide could help to get students over these hurdles. Students could reach out to these groups to receive support and find opportunities for advancement. Some of these groups include:

  • AICF. The American Indian College Fund is one of the most important and comprehensive support groups for native students.
  • AIHEC. The American Indian Higher Education Consortium provides a network of support to sunbonnets while also working hard to change federal policies so they better support Native students.
  • AIS. American Indian Services is a non profit group that creates programs and funding for Native Americans. The goal is to help them earn a quality education while maintaining their own heritage and culture.
  • AISES. American Indian Science and Engineering Society provides support for Native Americans who are pursuing education and careers in STEM areas.
  • PWNA. Partnership with Native Americans provides help and hope for those living on isolated or remote reservations. It gives aid to help improve the economic situation of these people.

What are Tribal Colleges?

Tribal colleges and universities are higher learning schools run by tribal leaders. This is a newer idea and an attempt to deal with some of the challenges Native students face.

How Could Tribal Colleges Help?

Tribal colleges typically assist students because they understand the traditions and cultures of their tribe or native group. This means students generally do not face conflicts between their education and their culture or beliefs.

Why are Tribal Colleges Important?

Tribal college sometimes provides the only college opportunity for local native populations. They are typically located close to the people who need them, sometimes even on the reservation, and have lower cost tuition. This all combines to likely make college more accessible for Native students.

List of Tribal Colleges

There are currently over 30 tribal schools throughout the United States. Many cater to the unique cultures of a specific tribal group, but all welcome Native and non-Native people. As long as students are wiling to embrace tribal culture, they may attend one of these schools:

 

 

 

Ilisagvik College

100 Stevenson St. | Barrow, AK 99723
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This tribal school typically serves the people of the North Slope Borough, which includes many who are part of the Inupiaq culture. It usually offers degrees in health, accounting, adult education, business, construction, emergency services, heavy equipment, info tech, liberal arts, office management, industrial safety, and Inupiaq cultural studies. Degree examples include:

  • Dental Therapy (AAS)
  • Inupiaq Studies (AAS)
  • Business and Management (AAS)
  • Allied Health (AS)

School Details:

  • Dual Credit program
  • NWCCU Accredited

Scholarships:

  • American Indian College Fund

Tribal Groups

  • Inupiaq

 

Dine College

One Circle Dr. Route 12 | Tsaile, AZ 86556
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This was the nation’s first tribal-controlled, accredited institution. It typically offers a range of general ed programs in arts, humanities, English, education, STEM, business, social science and Dine studies. Degree programs may include:

  • Public Health (BS)
  • Dine Studies (BA)
  • Business Admin (BA)
  • Elementary Ed (BA)

School Details:

  • Dual Credit program
  • HLC Accredited
  • American Indian Higher Education Consortium

Scholarships:

  • American Indian College Fund Student of the Year Award

Tribal Groups

  • Navajo Nation

 

Tohono O’odham Community College

Hwy 86 | Sells, AZ 85634
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This college sits on the 2.8 million acre Tohono O’odham reservation along the Mexico border. It typically offers degrees in the arts, business, science, health, education and social services, as well as several technical trades. Courses of study may include:

  • Business Admin (AB)
  • Life Science (AA)
  • Social Work (AA)
  • Tohono O’odham Studies (AA)
  • School Details:
  • Transfer programs to four-year schools
  • Direct Employment Programs
  • HLC Accredited
  • Scholarships:
  • Gewkdag Scholarship

Tribal Groups

  • Tohono O’odham

 

Haskell Indian Nations University

155 Indian Ave. | Lawrence, KS 66046
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HINU is the country’s top tribal university with a 120 year history. It tends to have a wide range of degree programs including American Indian studies, business admin, elementary education, environmental science, and others. Degree programs may include:

  • Indigenous and American Indian Studies (BA)
  • Elementary Ed (BS)
  • Business Admin (BS)
  • Environmental Science (BS)
  • School Details:
  • HLC Accredited
  • NCATE Accredited
  • Scholarships:
  • American Indian College Fund

Tribal Groups

  • Multiple tribes

 

Bay Mills Community College

12214 W Lakeshore Dr. | Brimley, MI 49715
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BMCC provides degrees for those in the Anishinaabek culture. Degree options typically include business admin, early childhood ed, construction, Ojibwe language instruction, criminal justice and computers. Degrees may include:

  • Computer Info Systems (AAS)
  • Paramedic (AAS)
  • Criminal Justice (AA)
  • Great Lakes Native Studies (AA)
  • School Details:
  • HLC Accredited
  • American Indian Higher Education Consortium
  • Online ed options
  • Scholarships:
  • Board of Regents Tuition Award
  • Herman E. Cameron Memorial Scholarship

 

Tribal Groups

  • Chippewa

 

Keweenaw Bay Ojibwa Community College

111 Bear Town Rd. | Baraga, MI 49908
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KBOCC is on the L’asnse reservation. It typically offers associated degrees in a range of fields, including Anishinaabe studies, business, environmental studies, and early childhood ed. Degrees may include:

  • Anishinaabe Studies (AA)
  • Business Admin (AS)
  • Early Childhood Ed (AS)
  • Liberal Studies (AA)
  • School Details:
  • Scholarships:
  • American Indian College Fund

Tribal Groups

  • Ojibwa
  • Chippewa

 

 

Saginaw Chippewa Tribal College

2274 Enterprise Dr. | Mount Pleasant, MI 48858
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This public college tends to reflect the culture and value of the Anishinaabe. It is a family-focused campus and typically has small class sizes. The programs include Native studies, business, science, and liberal arts. Degree programs may include:

  • Native American Studies (AA)
  • Business (AA)
  • General Science (AS)
  • Liberal Arts (AA)
  • School Details:
  • HLC Accredited
  • Scholarships:
  • SCTC Board of Regents’ Scholarship

Tribal Groups

  • Chippewa

 

Fond du Lac Tribal and Community College

2101 14th St. | Cloquet, MN 55720
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This school offers two and four year degree programs for students from the Fond du Lac Band of Lake Superior Chippewa and other tribal groups. Degrees are typically available in elementary ed, business, corrections, geospatial tech, nursing, and nutrition. Degrees typically include:

  • American Indian Studies (AA)
  • Elementary Ed (AS)
  • Corrections (AS)
  • Nursing (AS)
  • School Details:
  • HLC Accredited
  • World Indigenous Nations Higher Education Consortium
  • Scholarships:
  • Foundation Scholarships

Tribal Groups

  • Chippewa

 

 

Leech Lake Tribal College

6945 Little Wolf Rd. | Cass Lake, MN 56633
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Leech Lake Tribal College typically serves the Ojibwe community with degrees in the arts, humanities, tech, and natural sciences. The school offers many family friendly solutions, with a focus on the Anishinaabe values. Degree programs may include:

  • Liberal Education (AA)
  • Earth Systems Science (AS)
  • Business Management (AAS)
  • Early Childhood Development (AA)
  • School Details:
  • Named best Com. College in Nation by Wallet Hub in 2017
  • HLC Accredited
  • The American Indian Science and Engineering Society member
  • Scholarships:
  • LeRoy Staples Sr. and LeRoy B. Fairbanks Scholarship
  • Susan Helen Tibbetts Sjolund Scholarship
  • Clem Nason Memorial Scholarship

Tribal Groups

  • Ojibwe

 

Red Lake Nation College

23750 MN-1 | Red Lake, MN 56671
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This school provides Ojibwe language and cultural education. It typically focuses on two year degree programs that could transfer easily into four year schools. Many student services make it easier for students to attend. The school has two degree programs, which include:

  • Liberal Education (AA)
  • Social and Behavioral Sciences (AAS)
  • School Details:
  • HLC Accredited
  • Online ed options
  • Scholarships:
  • Presidential and Achievement scholarships

Tribal Groups

  • Red Lake Nation

 

White Earth Tribal and Community College

210 Main St. S | Mahnomen, MN 56557
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This school serves the White Earth Reservation and the communities surrounding it. It typically offers one associate degree program that provides a general education with a focus on core requirements. Many students transfer to a four year school after graduation.

  • Humanities, Arts & Social Sciences (AA)
  • School Details:
  • HLC Accredited
  • Scholarships:
  • White Earth Scholarship

Tribal Groups

  • MCT White Earth Band

 

Aaniiih Nakoda College

Hwy 2 and Hwy 66 | Harlem, MT 59526
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This school typically serves tribal and non-tribal members with a focus on the Fort Belknap Indian Reservation area. It has degrees in environmental science, education, business, Native studies, health, and psychology. Degree programs may include:

  • Aaniih Nakoda Ecology (BS)
  • American Indian Studies (AA)
  • Business (AA)
  • Human Services (AA)
  • School Details:
  • NWCCU accreditation
  • USDA Extension Demonstration Farm
  • Scholarships:
  • American Indian College Fund

Tribal Groups

  • Gros Ventre
  • Aaniiih
  • Nakota

 

Blackfeet Community College

504 SE Boundary St. | Browning, MT 59417
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BCC typically serves the Blackfeet Indian Reservation and surrounding communities with degrees in IT, business, education, health, humanities, STEM, and nursing. Childcare services make it possible for adults with families to attend. Degree programs usually include:

  • Accounting (AS)
  • Elementary Ed (AS)
  • Liberal Arts (AA)
  • Piikani Studies (AA)
  • School Details:
  • NWCCU accreditation
  • Online and hybrid courses
  • Scholarships:
  • First Time First Year Freshman Scholarship

Tribal Groups

  • Blackfeet

 

Chief Dull Knife College

One College Dr. | Lame Deer, MT 59043
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This tribal college typically provides degrees to members of the Northern Cheyenne reservation. The college is on the forefront of tribal language preserving efforts. Students may study the arts, political science, social science, STEM, business, paralegal, and Native studies. Programs are designed to transition students to four year degrees. Degree programs usually include:

  • Addiction Studies (AA)
  • AA Animal Science (AA)
  • Cheyenne Studies (AA)
  • Math (AS)
  • School Details:
  • American Indian Higher Education Consortium
  • American Association of Community and Junior Colleges
  • NWCCU accreditation
  • Scholarships:
  • American Indian College Fund

Tribal Groups

  • Cheyenne

 

Fort Peck Community College

PO Box 398 | Poplar, MT 59255
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This college has two campuses and several degree programs. Students may study degree programs or earn certs while preserving the culture of the Assiniboine and Sioux people from the Fort Peck Reservation. Some of the school’s degrees typically include:

  • Business Admin (AA)
  • Native American Studies (AA)
  • Bio Medical Science (AS)
  • Info Tech (AAS)
  • School Details:
  • NWCCU accreditation
  • World Indigenous Nations Higher Education Consortium
  • Scholarships:
  • American Indian College Fund

Tribal Groups

  • Assiniboine
  • Sioux

 

Little Big Horn College

8645 S Weaver Dr. | Crow Agency, MT 59022
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This school typically weaves the Crow culture into its training programs. It has a modern campus on the Crow Indian Reservation. Students may study a wide range of topics, including pre-nursing, info tech, Crow studies, ecology, and more. Degree programs likely include:

  • Business Admin (AA)
  • Crow Studies (AA)
  • Info Systems (AS)
  • Science (AS)
  • School Details:
  • NWCCU accreditation
  • Scholarships:
  • American Indian College Fund

Tribal Groups

  • Crow

 

Salish Kootenai College

PO Box 70 58138 US Hwy 93 | Pablo, MT 59855
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SKC reaches the people of the Flathead Nation. It generally provides a range of degree programs spanning everything from psych to construction. Student clubs and on campus housing make education attainable for students. Degrees typically include:

  • Business Admin (BA)
  • Forestry (BS)
  • Tribal Historic Preservation (BA)
  • Psychology (BA)
  • School Details:
  • Dual Enrollment program
  • NWCCU accreditation
  • Scholarships:
  • CSKT Scholarship

Tribal Groups

  • Flathead Nation
  • Séliš
  • Ksanka
  • QÍispé

 

Stone Child College

8294 Upper Box Elder Rd. | Box Elder, MT 58521
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SCC is a tribal chartered college that typically focuses on preserving the Chippewa Cree culture and language. Students may study health, arts, Native culture, tech, education, human services, and business. A campus daycare and on campus room rental help may students succeed. Degrees typically include:

  • Elementary Education (BS)
  • Allied Health (AS)
  • Native American Studies (AA)
  • Human Services Rural Behavioral Health (AA)
  • School Details:
  • NWCCU accreditation
  • American Indian Higher Education Consortium
  • Scholarships:
  • April Dawn Stamper Memorial Scholarship
  • Fine Arts Scholarship
  • William O. Goggins Journalism Award

Tribal Groups

  • Chippewa Cree

 

Cankdeska Cikana Community College

213 1st Ave. | Ft Totten, ND 58335
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CCCC trains the people of the Spirit Lake Dakota Reservation. It typically has degrees in Dakota studies, social work, the arts, tech, health, and ed, with trade certs as well. Many cultural events keep students connected to their tribe. Degree programs usually include:

  • Dakota Studies (AA)
  • Social Work (AA)
  • Pre Nursing (AS)
  • Office Tech (AAS)
  • School Details:
  • HLC Accredited
  • American Indian Higher Education Consortium
  • North Dakota Association of Tribal Colleges
  • Scholarships:
  • Spirit Lake Tribal scholarship

Tribal Groups

  • Dakota

 

Nueta Hidatsa Sahnish College

220 8th Ave. N | New Town, ND 59763
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NHSC is chartered by the Three Affiliated Tribes of the Ft. Berthold Reservation. It typically offers training in Native studies, ed, business, social work, STEM, and equine studies. On campus childcare and student housing are available. Degrees usually include:

  • Env. Science (BS)
  • Native Studies (BS)
  • Addiction Studies (AA)
  • Equine Studies (AA)
  • School Details:
  • HLC Accredited
  • Scholarships:
  • ITCHE Shikake Scholarship
  • Dakota Indian Scholarship
  • TAT Tribal Chairman’s Ed Grant

Tribal Groups

  • Mandan
  • Hidatsa
  • Arikara

 

Sitting Bull College

9299 Hwy 24 | Fort Yates, ND 58538
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This college is based on the Standing Rock Reservation, but also has sites in South Dakota. It typically offers academic, career, and tech ed, with bachelor’s and associate degree programs along with certs. It also has one master’s degree, making it one of the rare tribal schools to offer grad work. Degree options usually include:

  • Env. Science (MS)
  • Curriculum and Instruction (M.Ed)
  • Native American Studies (BA)
  • Social Work (BA)
  • School Details:
  • HLC Accredited
  • Scholarships:
  • Barden Scholarship
  • Build Your Brighter Future Scholarship
  • Crazy Horse Memorial Scholarship
  • Dakota/Lakota Scholarship
  • Doyle Butler Memorial Scholarship

Tribal Groups

  • Lakota
  • Dakota
  • Sioux

 

Turtle Mountain Community College

10145 BIA Rd. 7 | Belcourt, ND 58316
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TMCC trains the Turtle Mountain Band of Chippewa and sits on the Turtle Mountain Band of Chippewa reservation. This commuter college typically offers bachelor’s degrees, associate degrees, and certs. Degree programs may include:

  • School Details:
  • HLC Accredited
  • Dual Credit program
  • Scholarships:
  • Tribal Scholarship Program

Tribal Groups

  • Chippewa

 

United Tribes Technical College

3315 University Dr. | Bismarck, ND 58504
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UTTC is a tech school focused on tribal education and cultural preservation. It typically offers associate degree options and certs. Degree programs might include:

  • Elementary Ed (AS)
  • Auto Tech (AS)
  • Human and Social Services (AA)
  • Graphic Design (AS)
  • School Details:
  • HLC Accredited
  • Online degree options
  • Scholarships:
  • American Indian College Fund

Tribal Groups

  • Mandan
  • Hidatsa
  • Arikara

 

Little Priest Tribal College

601 E College Dr. | Winnebago, NE 68071
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LPTC typically offers associate degrees in language and culture as well as education, liberal arts, and business. The campus is on the Winnebago Reservation and strives to prepare students to transfer to a four year school. Degrees likely include:

  • Native American Studies (AA)
  • Teacher Ed (AA)
  • Indigenous Science Environmental (AS)
  • Indigenous Science Health (AS)
  • School Details:
  • American Indian Higher Education Consortium
  • HLC Accredited
  • Nebraska Transfer Initiative
  • Scholarships:
  • Winnebago Scholarship and Financial Assistance Program

Tribal Groups

  • Winnebago

 

Nebraska Indian Community College

College Hill | Macy, NE 68039
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This tribal school has three campuses and has both associate degrees and certs. Students may use their degrees to pursue entry level positions or to transfer to a four year program. Degree options include:

  • Carpentry (AAS)
  • Native American Studies (AA)
  • Para Educator (AA)
  • Business (AA)
  • School Details:
  • HLC Accredited
  • American Indian Higher Education Consortium
  • Scholarships:
  • High School Grad Success Scholarship

Tribal Groups

  • Omaha
  • Santee Sioux

 

Institute of American Indian Arts

83 Avan Nu Po Rd. | Santa Fe, NM 87508
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This is the only tribal college that is a four year fine arts institution. It typically serves all Native people, including Alaska Natives, and focuses on the Native arts. It has certs, associate degrees, bachelor’s degrees, and master’s degrees, and all are in the arts. Degree programs may include:

  • Cinema and Tech (BFA)
  • Creative Writing (MFA)
  • Museum Studies (BFA)
  • Studio Arts (BFA)
  • School Details:
  • HLC Accredited
  • IAIA Museum of Contemporary Native Arts
  • Dual Credit programs
  • Scholarships:
  • American Indian College Fund

Tribal Groups

  • Serves all Native people

 

Lowerpoint Rd. | Crownpoint, MN 87313
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NTU typicaly follows the Dine Philosophy of Education. It has a campus in Arizona as well as Crownpoint. It has master’s degrees, bachelor’s degrees, associates degrees, and certs, including several in the Dine language. Students may study education, health, veterinary science, energy, IT, business, and Native culture. Programs include:

  • Dine Culture, Language, and Leadership (MA)
  • BAS Hotel and Restaurant Admin (BAS)
  • Animal Science (BS)
  • Env. Science and Natural Resources (BS)
  • School Details:
  • HLC Accredited
  • ABET accredited
  • Scholarships:
  • PNM Scholarship
  • Tom Davis Scholarship

Tribal Groups

  • Navajo

 

Southwestern Indian Polytechnic Institute

9169 Coors NW | Albuquerque, NM 87184
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This school typically focuses on STEM opportunities for Native learners. It has certs and associate degree programs in tech and computers. It also has degrees in business. Programs may include:

  • Culinary Arts (AAS)
  • Vision Care Tech (AAS)
  • Geo Spatial Info Tech (AAS)
  • Pre Engineering (AS)
  • School Details:
  • HLC Accredited
  • American Indian Higher Education Consortium
  • Online degree options
  • Scholarships:
  • The Johnson Scholarship
  • SIPI New Student Scholar

Tribal Groups

  • All tribal groups served

 

College of the Muscogee Nation

1200 Hwy Loop 56 | Okmulgee, OK 74447
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This college typically offers general ed and tribal programming. Associate degrees and certs are both available, many in the Mvskoke language. Degree options may include:

  • Native American Studies (AS)
  • Tribal Services (AS)
  • Criminal Justice (AAS)
  • Gaming (AAS)
  • School Details:
  • HLC Accredited
  • Scholarships:
  • Muscogee (Creek) Nation Scholarship Foundation

Tribal Groups

  • Muscogee (Creek)

 

Sinte Gleska University

101 Antelope Lake Circle | Mission, SD 57555
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This college typically offers master’s degrees, bachelor’s degrees, associate degrees, and certs in the arts, education, computers, human services, and Native history and culture. Degree usually programs include:

  • School Details:
  • HLC Accredited
  • Scholarships:
  • American Indian College Fund

Tribal Groups

  • Sicangu Lakota
  • Sioux

 

Sisseton Wahpeton College

BIA Rd. 700 Agency Village | Sisseton, SD 57262
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SWC serves members of the Sisseton Wahpeton Oyate of the Lake Traverse Reservation. It typically has associate degrees and certs in a range of fields, including business, finance, ed, and Dakota studies. Degree programs include:

  • Addiction and Diversity Counseling (AS)
  • Sustainable Env. Studies (AS)
  • Carpentry Tech (AAS)
  • Dakota Studies (AA)
  • School Details:
  • HLC Accredited
  • Articulation Agreements
  • Online degrees offered
  • Scholarships:
  • N/A

Tribal Groups

  • Sisseton Wahpeton Sioux

 

Oglala Lakota College

3 Mile Creek Rd. | Kyle, SD 57752
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OLC serves the Pine Ridge Reservation and the Oglala Sioux Tribe. It typically has master’s degrees, bachelor’s degrees, associate degrees, and certs, with a focus on Lakota language and culture. Students may study health, IT, business, ed, construction, STEM, and Native studies. Degree programs likely include:

  • Lakota Studies (BA)
  • Lakota Leadership and Management (MA)
  • K 12 Lakota Studies Education (BS)
  • Social Work (BSW)
  • School Details:
  • HLC Accredited
  • American Indian Higher Education Consortium
  • Online degree options
  • Scholarships:
  • Board of Trustees Supplemental Scholarship
  • Johnson Entrepreneurship Scholarship

Tribal Groups

  • Lakota
  • Oglala Sioux

 

Northwest Indian College

2522 Kwina Rd. | Bellingham, WA 98226
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NIC is part of the Lummi reservation and typically focuses on protecting tribal values. Students can earn bachelor’s degrees, associates degrees, and certs in Native studies, tribal government, business, human services, and IT. Programs usually include:

  • Native Studies Leadership (BA)
  • Community Advocacy and Community Ed in Human Services (BA)
  • Native Env. Science (BA)
  • Tribal Gov. and Business Management (BA)
  • School Details:
  • NWCCU accreditation
  • Scholarships:
  • American Indian Entrepreneurship Scholarship (NWIC)
  • Foundation Scholarships (NWIC)
  • S-STEM Scholarship (NWIC)

Tribal Groups

  • Lummi

 

College of Menominee Nation

N 172 Hwy 47/55 | Keshena, WI 54135
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CMN is on the Menominee Reservation with a campus in Green Bay. This school typically has bachelor’s degrees, associate degrees, and certs. Students may study education, nursing, Native studies, business, and STEM. Programs include:

  • Public Admin (BA)
  • Business Admin(BS)
  • Natural Resources (AAS)
  • Substance Abuse (AAS)
  • School Details:
  • HLC Accredited
  • Scholarships:
  • CMN Privately Funded Scholarships

Tribal Groups

  • Menominee Nation

 

Lac Courte Oreilles Ojibwe Community College

13466 W Trepania Rd. | Hayward, WI 54843
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Programs typically include:

  • Native American Studies (AAS)
  • Accounting (AAS)
  • Business (AS)
  • Nursing (AS)
  • School Details:
  • HLC Accredited
  • Scholarships:
  • La Courte Orielles Ojibwe College Student Scholarship Fund
  • Johnson Scholarship Foundation Scholarship
  • Gay I. & Harry C. Leslie III Fund
  • Isham Chase Scholarship Fund

Tribal Groups

  • Chippewa

Student Loan Fraud – Don’t Get Scammed

Posted on by Venessa Regali

Avoid Student Loan Fraud

Then, Get Matched To Online Schools Using Our Degree Finder!

Student Loan Fraud – Don’t Get Scammed

Beware of fraudulent schemes that claim to offer relief from student loan debt – these scams are designed to deceive and drain your finances. These unscrupulous companies cunningly present themselves as associates of the U.S. Department of Education, all while swindling millions from unsuspecting victims. Their modus operandi involves making enticing but false assurances of erasing student loan debt burdens.

In a recent case, scammers were brought to a halt by the Federal Trade Commission (FTC) for their fraudulent practices. This operation preyed upon students seeking debt relief, taking advantage of their vulnerability. These nefarious activities involved fabricating affiliations with esteemed institutions, like the U.S. Department of Education, and employing deceptive tactics to convince students to cease communication with their legitimate federal loan servicers. These scammers cunningly manipulated the concept of debt relief and lured students in with the allure of the “Biden Loan Forgiveness” plan, which they falsely claimed to offer, all the while collecting exorbitant upfront fees.

The FTC asserts that this group, operating under various names like Express Enrollment LLC and Intercontinental Solutions LLC, managed to amass a staggering $8.8 million in ill-gotten upfront fees since at least 2022. These fraudulent entities, led by individuals such as Marco Manzi, Ivan Esquivel, and Robert Kissinger, exploited the uncertainty surrounding student loan borrowers and preyed on their desire for debt alleviation. Through persuasive misrepresentations and bogus promises, they managed to convince individuals to part with their hard-earned money for services that were non-existent.

Fortunately, the FTC, armed with its Bureau of Consumer Protection, is relentless in its pursuit of such scams. The agency promptly filed a complaint against the defendants, prompting a federal court to take immediate action by imposing a temporary restraining order and freezing the assets of the culprits’ operation, known as Apex Processing Center.

It is essential to remain vigilant and informed to avoid falling victim to these fraudulent schemes. The FTC provides valuable resources to help individuals recognize and steer clear of student loan debt relief scams. Remember, legitimate assistance for student loans can be accessed for free through trusted channels like StudentAid.gov. With a unanimous vote of 3-0, the FTC continues its resolute efforts to shield the tens of millions of Americans grappling with student loan debt from such malicious scams.

Student Loan Fraud and Facts

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How to Avoid Student Loan Debt Relief Scams

Equipping yourself with knowledge about your student loan debt is your best defense against falling victim to the next potential scam. Here are some key pointers to bear in mind in order to safeguard yourself from falling prey to such fraudulent schemes.

#1 Be Aware of “Payment up Front” Scammers

Legally, companies are prohibited from charging you prior to offering assistance. While some companies might promise to alleviate your student debt burden, there’s truly nothing they can accomplish for you that you can’t achieve independently, and at no cost.

#2 Check Out Options for Financing College

Before resorting to a loan, it’s prudent to explore alternative sources of financial aid, such as grants, scholarships, and federal work study programs. A pivotal initial step involves completing a Free Application for Federal Student Aid (FAFSA). When creating your FSA user account, exercise caution not to share your ID, as unscrupulous individuals could exploit it to gain unauthorized access and compromise your account’s security.

#3 Learn About Student Loans

Student loans can be categorized into two types: federal loans offered by the government and private loans extended by entities like banks and credit unions. Federal loans come with certain safeguards, but private loans lack comparable protections. Irrespective of the source, repayment remains your responsibility.

#4 Understand Loan Forgiveness and Repayment

You may qualify for alternative repayment plans or even loan forgiveness based on your specific loan type and circumstances. These possibilities hinge on factors unique to your situation. It’s vital to recognize that no company possesses the ability to secure these options for you that you cannot secure on your own. Equipping yourself with this understanding serves as a bulwark against the tactics employed by scammers.

If you have federal loans, the Department of Education has a few free programs.

  • Income driven repayment plans – monthly payments based on how much money you make
  • Deferment and forbearance – you postpone payments though may incur more interest
  • Loan forgiveness or discharge – these programs let you off the hook, but you have to qualify (E.g. you become disabled or find out your school committed fraud)

For private loans, deal with reputable loan servicers. Keep in mind it is also unlikely the servicer will offer a loan forgiveness program. So, any third party claiming they can do this for you is likely a scammer. Don’t listen and don’t give any third party your account details either.

#5 Be Cautious with Consolidation

Consolidating a loan involves amalgamating multiple loans into a singular entity. This results in a fresh loan arrangement and altered repayment terms, which could potentially impact your interest rate.

When choosing to consolidate your loans through the federal government, this process is devoid of charges. Hence, if any company proposes a fee for this service, it’s advisable to firmly decline. In some cases, consolidating loans with a private lender may entail costs. However, it’s prudent to steer clear of entities that demand upfront payments. Furthermore, exercise prudence when encountering debt relief agencies and lenders who propose the consolidation of federal and private loans into a solitary new loan, promising reduced monthly payments or lower interest rates. The Federal Trade Commission (FTC) strongly advises against pursuing such arrangements.

Five Things to Remember About Scammers to Avoid Student Loan Fraud

  1. Only scammers promise fast loan forgiveness
  2. Never pay a fee upfront (Think: free not fee)
  3. Use trusted sites – scammers can make fake gov’t seals
  4. Don’t give or share your FSA ID with anyone
  5. You can’t roll federal and private loans together to lower payments
  6. Report scams so others don’t suffer: 1-877-FTC-HELP (382-4357)

Financial Aid Info

 

Education Tax Credits | AOTC & LLC

Posted on by Venessa Regali

The United States government provides Education Tax Credits (ETCs) for eligible students and individuals who cover educational expenses. Tax credits offer a one-to-one reduction in your tax liability, effectively reducing the amount of taxes you must pay. If these deductions bring your tax liability below zero, you may even be eligible for a tax refund. These credits were established to incentivize students to pursue higher education and ease the burden of tuition costs.

There are two potential tax credits available to students: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). To qualify for either of these credits, students must satisfy a range of criteria, some of which overlap while others differ.

To be eligible for either the AOTC or LLC credit, you must, at the very least, satisfy the following requirements:

  1. Qualified expenses for higher education, such as tuition and mandatory fees, must be paid by you, a dependent, or a third party.
  2. The eligible student must be enrolled in an eligible higher education institution, one that qualifies for federal student aid and possesses a Federal School Code.
  3. The eligible student, whether it’s yourself, your spouse, or a dependent, must be included on your tax return. An eligible student cannot be married and file taxes separately.

In addition to these fundamental criteria, there are further distinct conditions that must be met to qualify for the AOTC and LLC.

AMERICAN OPPORTUNITY CREDIT

The American Opportunity Tax Credit (AOTC) represents a modification of a prior credit known as the Hope Credit.

Eligibility for the AOTC extends to students, spouses of students, and third parties (including parents of students) who have covered the qualified expenses, such as tuition and fees, for someone attending school. The individual claiming this credit must have made these payments either in the preceding year or within the initial three months of the year in which the taxes are being filed.

Once you meet the qualifications, you can apply for the AOTC once annually, limited to the first four years of a student’s college education. The student in question must be enrolled in a program leading to a degree or certificate and be enrolled at least half-time during one academic period (e.g., a semester) for the tax year.

This credit is calculated in two parts, meaning students can receive the tax credit on the following:

  1. 100% of the first $2000 of eligible expenses
  2. 25% of the next $2000 of eligible expenses

In short, the AOC is worth up to $2500 in tax credit per year. If you do not owe any taxes, you can have up to 40 percent of the tax credit refunded to you.

To remain eligible for this tax credit, your modified adjusted gross income must be $80,000 or less. For married couples filing jointly, it must be $160,000 or less.

LIFETIME LEARNING TAX CREDIT

The Lifetime Learning Credit is easier to qualify for than the AOTC.

Students become eligible for the LLC by taking at least one course during the tax year. Their course or courses can apply toward a degree or certificate, or they can simply stand alone. Said another way, students can earn this credit simply by taking a course or two to enhance their job skills.

There is no limit to the number of years students can apply for the LLC. Therefore, they can apply for one as they earn their undergraduate and/or graduate degrees. They can also apply for it to supplement the costs of undergraduate or graduate courses.

To be eligible for the LLC, applicants’ modified adjusted gross income must be $52000 or less. For married couples filing jointly, it must be $104,000 or less. You can only claim an LLC for one student per tax return.

The LLC is worth up to $2000 per return. Unlike the AOC, it does not offer a refund if you do not owe any taxes.

Like the AOTC, the LLC is available to U.S. Citizens and Resident Aliens. It is not available to students who are already claimed as a dependent on someone else’s tax return (such as a parent’s).

Key terms and forms for the LLC:

  • Modified Adjusted Gross Income: this is the adjusted gross income, found online seven of Form 1040. Use Publication 970 through the IRS to help find this number. It helps you identify whether or not you’re eligible for the AOTC.
  • IRS forms to use: Form 8863 (Education Credits) and Form 8863 Instructions (note that this is the same form you will use for the AOTC).

AMERICAN OPPORTUNITY TAX CREDIT VS. LIFETIME LEARNING CREDIT

CriteriaAOTCLLC
Maximum CreditUp to $2500 per eligible studentUp to $2000 per credit return
Refundable or Not Refundable40% of creditNot refundable 
Limit on MAGI for Married Filing Jointly$180,000$134,000
Limit on MAGI for single, head of household, or qualifying widow(er)$90,000$67,000
Number of Years of College Education Available4Unlimited
Type of Program RequiredThe student must be pursuing a degree or certificate  The student does not have to be pursuing a degree or certificate
Number of CoursesThe student must be enrolled at least half time for at least one academic period beginning in 2018Available for one or more courses
Qualified ExpensesTuition, required enrollment fees, required course materialsTuition and fees required for enrollment or attendance
Whom Can You Claim the Benefit for?
  • You
  • Your spouse
  • The student you claim as a dependent
  • You
  • Your spouse
  • The student you claim as a dependent
Who Must Pay the Qualified Expenses?
  • You or your spouse
  • Student
  • Third party
  • You or your spouse
  • Student
  • Third party

Source

Taking advantage of the American Opportunity Tax Credit and the Lifetime Learning Credit help make higher education more affordable. Remember that to qualify for either, you must:

  • Pay qualified expenses for higher education
  • Have a student (or be a student) registered at a qualified college (one that has a Federal School Code)

Otherwise, the LLC is easiest to qualify for. To receive that tax credit, students can take as few as one class. They do not have to be pursuing a degree or certificate. And they can apply for the LLC for the duration of their academic career; there is no limit to the number of years it’s available.

The AOTC meanwhile, is more difficult to qualify for. To receive that tax credit, students must be enrolled at least half time for one academic period per year. They have to be pursuing a degree or certificate. And they can only apply for the credit for the first four years of college education.  

The IRS makes applying for the AOTC and the LLC relatively simple. Applicants can use Form 8863 for both, and instructions for applying are available online.

Be sure to take advantage of the government-supplied benefits.

Private Student Loans

Posted on by Venessa Regali

Private student loans serve as a means to fill the financial gap between federal financial aid and the actual cost of your college tuition. Prioritize exhausting financial aid from other sources, such as grants, scholarships, work-study, and federal loans. If there’s still a need for additional funds, considering private loans could be the next step in your college financing strategy.

Here’s what you need to know before getting started!

FEDERAL VS PRIVATE STUDENT LOANS

Federal student loans receive funding from the federal government, while private student loans are provided by lenders such as banks and credit unions. Additional distinctions between the two types of loans include: 

  • Overall Cost of the Loan.  Private education loans tend to have a higher overall cost. 
  • Interest Rates. Private student loan interest rates may be higher than federal rates. Sometimes, private loans have variable interest rates that change over the life of the loan.
  • Loan Repayment Terms.  Private loans often come with less favorable repayment terms compared to federal student loans, which may offer income-based repayment plans and other benefits. 
  • Borrower Eligibility. For private student loans, your credit score may impact your eligibility, and you might need a cosigner. In contrast, most federal loans do not require a credit check or cosigner. 

Make sure to explore all available government financial aid programs before considering private student loans. However, if federal loans fall short in covering your college expenses, a private loan could be a viable option. 

FINDING LENDERS

Numerous banks, credit unions, and financial institutions provide private student loans. To find the best fit for you, it’s prudent to compare interest rates, terms, and conditions among a selection of top-rated lenders.

COMPARE THESE PRIVATE STUDENT LOAN LENDERS:

  • Sallie Mae
  • SunTrust 
  • College Ave
  • PNC
  • Citizens

APPLY FOR A LOAN

When exploring private student loans, it’s essential to consider that not all loans are alike, and different lenders may offer products, features, and terms that align better with your objectives. As you delve into potential lenders, here are some crucial factors to bear in mind:

  • Your Eligibility. Assess whether you seek private student loans without cosigner requirements or if your credit history presents challenges. Some private loans may suit your needs more favorably based on your citizenship status, income, part-time or full-time student status, and other criteria.
  • Loan Cost. Scrutinize factors such as the loan’s interest rate, interest type (fixed or variable), and associated fees. These elements contribute to the overall cost of your loan. For instance, be cautious when opting for a low, variable interest rate if you intend to repay the loan over an extended period. Variable rates can fluctuate with the market, resulting in higher payments than anticipated.
  • Loan Features. Certain private loans offer advantageous features, such as cosigner release, deferment options in case of financial hardship, or early repayment opportunities. Additionally, many lenders provide auto-pay discounts, often reducing the interest rate by 0.25 or 0.50 percent. Compare multiple lenders to explore the various features available to you.

HOW TO APPLY FOR PRIVATE STUDENT LOANS

Prior to considering private student loans, it’s crucial to complete your FAFSA and make the most of any federal grants or loans you are eligible for. Additionally, don’t overlook the opportunity to apply for scholarships! If you find that you still require additional funds, then you can initiate the process of selecting a lender and applying for private student loans.

IF YOU’RE ELIGIBLE, HERE’S HOW TO GET A PRIVATE STUDENT LOAN:

  1. Get Ready to Apply. Generally, you can apply for private student loans online. To start, you’ll need to prove your basic eligibility – like citizenship and college enrollment status.
  2. Submit Documentation. You’ll need to provide your personal and financial information to your lender. Your lender may require documents like your Social Security number, a pay stub for proof of income or your monthly housing costs. They may also as for your school’s cost of attendance, the amount of financial aid you’ve already received, your cosigner’s details (if applicable), and other information.
  3. You’ll Receive a Decision. Your lender will need to process your application and analyze your financial and eligibility information, to let you know whether you’re approved. If you’ve applied for your private loan online, you may receive a result pretty quickly – sometimes in minutes! In other cases, a lender may need more information from you to move forward.
  4. Choose and Accept the Loan Terms. Once you’ve been approved for the loan, you’ll need to decide on your interest rate type (fixed or variable), loan term, and repayment plan. You and your cosigner (if you have one) will then sign the loan agreement.
  5. Wait for Disbursement. Your private student loans will be sent directly to your college or university. If you have borrowed more than your tuition actually costs, your school will generally refund the difference to you. You can return that money to your lender. Or you could use it to cover other college costs, like room, board, or your textbooks. It’s always best to borrow the minimum amount you need to cover your education related expenses.

PRIVATE STUDENT LOANS ARE AN IMPORTANT RESPONSIBILITY

Opting for private loans to finance your college education can make your academic journey possible. College opens doors to new career opportunities and a promising future. Nevertheless, it is crucial to be aware of the risks and responsibilities as a borrower. You must ensure that you are prepared to take out and eventually repay your private loans.

 

© Education Connection 2024. All Rights Reserved.

*https://nces.ed.gov/programs/digest/d20/tables/dt20_311.15.asp

Sources for school statistics is the U.S. Department of Education’s National Center for Education Statistics.

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This is an offer for educational opportunities, not an offer for nor a guarantee of employment. Students should consult with a representative from the school they select to learn more about career opportunities in that field. Program outcomes vary according to each institution’s specific program curriculum. Financial aid may be available to those who qualify. The financial aid information on this site is for informational and research purposes only and is not an assurance of financial aid.

1 You must apply for a new loan each school year. This approval percentage is based on students with a Sallie Mae undergraduate loan in the 2018/19 school year who were approved when they returned in 2019/20. It does not include the denied applications of students who were ultimately approved in 2019/20.

2 This promotional benefit is provided at no cost to borrowers with new loans that disburse between May 1, 2021 and April 30, 2022. Borrowers are not eligible to activate the benefit until July 1, 2021. Borrowers who reside in, attend school in, or borrow for a student attending school in Maine are not eligible for this benefit. Chegg Study® offers expert Q&A where students can submit up to 20 questions per month. No cash value. Terms and Conditions apply. Please visit http://www.chegg.com/legal/smtermsandconditions for complete details. This offer expires one year after issuance.

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